$1 billion facelift: Darling Harbour set for major revamp

The Sydney Entertainment Centre, Convention Centre and Exhibition Centre at Darling Harbour will be closed for three years while they are expanded or replaced under a $1 billion upgrade approved by NSW cabinet.

NSW Premier Barry O'Farrell today announced the scope of the Darling Harbour upgrade first announced last year has been expanded for the second time to ensure the facilities are equal or better than those in other Australian capitals.

In a request for proposals to be handed to two consortia bidding for the job, the size of the precinct to be redeveloped has been increased from 12 to 20 hectares and now takes in Tumbalong Park, although Mr O'Farrell has promised no reduction in public space.

The consortia will finalise bids by the end of the year when Infrastructure NSW, led by former Premier Nick Greiner, will decide which plans to accept.

New facilities will include:

* An upmarket replacement for the Entertainment Centre with seating for at least 8000 people, 2000 less than the existing venue.

* An increase in size of the Exhibition Centre from 25,000 square metres to 40,000 square metres making it Australia's largest exhibition space;

* A convention hall with capacity for more than 10,000 people which can host multiple events simultaneously making it the biggest such facility in the country.

* Dedicated banqueting facilities for 2000 people, almost double the current capacity.

* A hotel with at least 300 rooms

"The project will mean a complete facelift for Darling Harbour - as well as the world-class facilities," Mr O'Farrell said today.

Up to 3500 jobs are expected to be created during the construction.

While the 30-year-old Sydney Entertainment Centre is likely to be demolished, the fate of the exhibition and convention facilities is less certain although they will be closed from late 2013 to late 2016 while the works are carried out.

The project is aimed at boosting the competitiveness of the major events industry in the state, particularly in the Asia-Pacific.

"They will bring NSW an economic benefit of more than $1 billion over five years," Mr O'Farrell said.

"NSW has already lost $150 million in economic benefit over the four years to 2010-11 because the current facilities have not been able to accommodate 169 conventions and 12 exhibitions," Mr O'Farrell said.

"The NSW government is creating a vibrant world-class convention, exhibition and entertainment precinct at Darling Harbour that will keep Sydney centre stage as Australia's global city," he said.

Infrastructure NSW (INSW) will lead the delivery of the new facilities as part of a Public Private Partnership (PPP) tailored for the project.

During the three-year construction period, Sydney's major events industry will remain open for business, Mr O'Farrell said.

The private sector will build the facilities at an estimated cost of $1 billion and the NSW government will then back over the life of the contract.

Sydney Olympic Park, Moore Park, the Australian Technology Park at Eveleigh and various Sydney hotels will play an expanded role in hosting events during the construction period.